Plastic Omnium - 2018 Registration Document

1 PRESENTATION OF PLASTIC OMNIUM AND ITS BUSINESSES Research and Development (R&D) PLASTIC OMNIUM 2018 REGISTRATION DOCUMENT 31 innovative grille: Plastic Omnium developed a manufacturing process ● that integrates modern radar technologies into an innovative grille with 3 functions: a chrome surface that is compatible with radar (which was previously impossible), a de-icing function that guarantees functioning in all weather, and integrated lighting signature, thanks to flexible optical fibers; a lighter, interactive tailgate (smart tailgate): made from high-efficiency ● composite materials, this next-generation tailgate is about 30% lighter than steel. In addition to being lighter, the Plastic Omnium tailgate integrates numerous aerodynamic and interactive functions. The tailgate can display messages in order to communicate with its environment. Numerous informational messages may be displayed on a transparent area. This area can also display personalized signs if the driver so chooses. Through the solutions developed by the Company, the tailgate interacts in three ways: facial recognition unlocks the vehicle using special software; ● the “touch and open” and “touch and stop” system works through ● conductive paint; detection of obstacles prevents damage when the trunk is opened. ● The tailgate has improved aerodynamics thanks to an active spoiler and a lateral deflector enabling better passage of air along the roof line. The drag coefficient is improved by 3 to 4%, for a reduction in carbon emissions of 1 g/km. Furthermore, a mobile diffusor integrated into the rear bumper extends under the floor, improving the drag coefficient by another 3% and reducing carbon emissions by another 1 g/km. In addition, in a context of increasingly strict environmental standards, the Group is supporting carmakers’ emission-reduction strategies: solutions for hybrid engines: Plastic Omnium offers solutions ● specifically adapted to rechargeable hybrid vehicles. INWIN is a fuel system that resists the increase in gasoline vapor pressure when the vehicle is running in electric mode, thanks to its optimized architecture. TANKTRONIC ® offers simplified, innovative architecture, with an innovative E-valve that is guided electronically. This system permits optimal function at a low cost; clean diesel with SCR (Selective Catalytic Reduction): the ● implementation of SCR technology into diesel vehicles results in efficient removal nitrous oxide (NOx), complying with the strictest regulations. This technology consists of spraying AdBlue ® into the exhaust pipe. Upon contact with the gases that result from diesel combustion, a chemical reaction breaks down nitrous oxide emissions into nitrogen and water vapor; to improve engine performance, water injection significantly reduces fuel consumption and, therefore, carbon emissions (by about 15%). the water injection system: developed by Plastic Omnium’s teams, this ● technology can be used in gasoline-powered vehicle. Initially designed Finally, Plastic Omnium is designing a system for storing hydrogen under pressure. The gas is stored in Type IV bottles (tanks made of composite materials and plastic) designed to resist strong internal force. The bottle is comprised of a 5 mm watertight, thermoplastic liner and a thick carbon fiber structure. It is designed to resist the mechanical stress generated by the tank’s internal pressure. Plastic Omnium’s R&D Department has been conducting research for several years into a technology that can now offer tanks compressed at 700 bars. With 2 tanks holding 60 liters each, the vehicle has a range of 800 km. One of the innovations Plastic Omnium is working on is to supply a vehicle’s electric engine using a fuel cell, which converts the oxygen and hydrogen in the bottles into electrical energy. The advantage of this system is that the only waste products are water and heat. These next-generation fuel cell systems, combined with hydrogen tanks, are much lighter than traditional batteries, despite offering the same range (800 km) and rapid recharging (3 minutes). Fuel cells, combined with hydrogen tanks, will enable electrical vehicles to solve their range and charge-time problems as well as the climate conditions that currently limit their development. In 2016, together with the Israeli company Elbit Systems, Plastic Omnium formed a fuel cell start-up called Ξ PO-CellTech. A joint research center opened in Césarée, Israel, in mid-2016. Plastic Omnium brings its automotive know-how in electronic systems and fluids management to the enterprise. Plastic Omnium’s know-how is being combined with improvements already developed by Elbit Systems to create a fuel cell containing very few precious metals. Accelerating its innovation strategy, in January 2018 the Group created Plastic Omnium New Energies, a subsidiary of Clean Energy Systems, dedicated to the development of future energies, in particular in the area of hydrogen fuel cell propulsion. In December 2017 the Group completed the acquisition of 2 companies with strong technological content in this area: Swiss Hydrogen, a Swiss company based in Fribourg, specializes in the ● design and production of energy-management and energy-control solutions in fuel cell systems dedicated to mobility (“balance of plant”); Optimum CPV, a Belgian company based in Zonhoven, specializes in ● the design and production composite filament for high pressure hydrogen storage. These different actions, combined with joining the steering committee of the “Hydrogen Council”, have positioned Plastic Omnium as a player in electric propulsion. The entity Plastic Omnium New Energies, whose mission will be strengthened in the coming months, already has more than 130 engineers and represents a total investment program of €200 million.